June jobless rate: Rural unemployment fell to 4.9% while the urban rate rose to 7.1%

NEW DELHI: India's unemployment rate remained steady at 5.6% in June, unchanged from May, as an improvement in rural areas offset a rise in urban joblessness, official data released on Tuesday showed.

Rural unemployment declined to 4.9% in June from 5.1% in May, while urban unemployment increased to 7.1% from 6.9%.

The data reflects the share of individuals aged 15 and above who are actively seeking work and available for employment.

"The decrease in the unemployment rate for rural areas for both males and females can be attributed to an increase in the share of own-account workers (self-employed) in June compared to May, along with a reduction in the number of unemployed persons," the statistics ministry said in a statement. "The rise in own-account work during this period may be driven by seasonal factors, prompting individuals to engage in small-scale or self-initiated activities (e.g., petty trade, repair work, or services)," it added.

Youth unemployment edged up in June, with 15.3% of individuals aged 15-29 who were working or seeking work remaining jobless, up from 15% in May. The rate was higher among females (17.4%) than males (14.7%).

Overall, the unemployment rate among women declined to 5.6% in June from 5.8% in May, while it remained unchanged at 5.6% for males.

Among rural males, the rate fell to 5.1% in June from 5.3% in May, while for rural females it dropped to 4.4% from 4.7%. Among urban males, it rose to 6.4% from 6.2%, while for urban females it held steady at 9.1%.

Labour force dips
The labour force participation rate (LFPR) - which measures the share of population working or seeking work - declined marginally to 54.2% in June from 54.8% in May, according to the Periodic Labour Force Survey (PLFS) monthly bulletin released by the statistics ministry.

The worker population ratio (WPR), or employment rate, fell to 51.2% in June from 51.7% in May. Female WPR saw a sharper drop, falling to 30.2% from 31.3%, while male WPR dipped slightly to 72.8% from 72.9%.

The fall in LPFR and WPR was driven by seasonal agricultural patterns, extreme summer heat, and a shift of unpaid helpers, particularly from high-income rural households, towards domestic chores, the ministry noted.

Female LFPR dropped to 32% in June from 33.2% in May, while male LFPR saw a slight dip to 77.1% from 77.2%. Among rural females, it fell to 35.2% in June from 36.9% in May, while among rural males it fell to 78.1% from 78.3%. The ministry said that over a 1-percentage point decline in rural female participation was due to a reduction in unpaid helpers engaged in agricultural work, as several of them reported engaged in domestic duties.

"Additionally, the share of rural female workers in agriculture dropped from 70.2% in May to 69.8% in June 2025, indicating that reduced need for agricultural engagement among women, perhaps due to a decline in rural inflation," it added. Rural inflation declined to 1.7% in June from 2.6% in May.

Youth LFPR declined to 41% in June from 42.1% in May. Female youth LFPR was 20.6% in June, significantly lower than 61% for males.

The figures are based on the current weekly status (CWS), which measures an individual's activity by whether they worked or sought work in the seven days preceding the survey date.